Contractors working abroad have been urged to get their international tax affairs in order following the introduction of new legislation.
The Organisation for Economic Co-Operation and Development (OECD) has put in place a new automatic exchange of tax information, which means countries across the globe will able to access much more information about potential tax avoiders when it comes into force on 1st January 2016.
Until now information on taxpayers’ overseas finances was only available and shared following a request based on the evidence of fraud or other crimes. This is set to change in the New Year, with governments automatically receiving a wealth of data and information on finances.
CXC Global has now renewed its call for flexible workers to get to grips with their international taxes. The firm first highlighted the importance of compliance earlier this year, urging contractors to “take their projects seriously” and to ensure they are up to speed with the legislation in the country they are operating in.
CXC Global managing director Michelle Reilly said: “Time really is running out for professionals who haven’t got their tax affairs in order. The new ruling will mean that governments around the world will receive so much more information than they ever have in the past, and consequently are likely to be able to identify considerably more transgressors.”
She added: “In the past there may have been a chance that professionals could slip through the net, but with the new Common Reporting Standard being put in place, the chances of that continuing are shrinking rapidly.”